The Suffolk Bank and the Panic of 1837

Arthur J. Rolnick, Bruce Smith and Warren Weber

Quarterly Review, 2000, vol. 24, issue Spr, 3-13

Abstract: The Suffolk Bank in Boston is well known as having been the clearinghouse for virtually all the banknotes that circulated in New England between 1836 and 1858. An examination of 19th century bank balance sheets shows that during and after the U.S. banking Panic of 1837, this private commercial bank also provided some services that today are provided by central banks. These include lending reserves to other banks (providing a discount window) and keeping the payments system operating. Because of Suffolk's activities, banks in New England fared better than banks elsewhere during the Panic of 1837. And after the panic, when much of the United States suffered a prolonged economic slowdown, New England fared better than the rest of the country, at least partly because of Suffolk?s central bank-like activities.

Keywords: Bank notes; Banks and banking - History (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (3)

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